Mercedes-Benz is expanding at a rapid rate. Källenius says that isn't a problem, as long as every car is worthy of the three-pointed star.

"One thing that's extremely important is that you have an authentic offering in every class," Källenius says.

"If you stick true to that principle you don't run the risk of watering the brand down."

Källenius says the machine, which is set to be engineered by Mercedes' commercial arm, will cater to work and play.

"Our colleagues in the van division have made a decision to go into that segment," he says. "I'm absolutely certain as is the case with the V-Class that when they launch that vehicle they will equally cater to sides, the work side of things and the leisure side of things."

The Stuttgart executive says Mercedes will build one version of the ute, which will be based off the same underpinnings as the Nissan Navara, rather than having various body style combinations. It is understood that the vehicle will feature moderate driver aids while falling short of semi-autonomous driving features available in cars such as the 2016 E-Class.

He added that while there is room for more models in the Mercedes-Benz stable, no car would undercut the entry-level trio comprised of the A-Class, CLA-Class and GLA-Class.

"What we have said is that we don't want to go below the 'C segment', the A-Class the B-Class the CLA and so on," Källenius says.